Whether you run a big or small company, human resource services can help you succeed in what you do. You need to coordinate all your employees and ensure they perform their duties as expected. You also need a means of finding out if you need more or fewer workers depending on your workflow. However, sometimes it can be very costly to run such a department, and it might be a great idea to outsource your HR solutions. Allowing another company to manage your human resources may seem odd at first, but it doesn’t mean that you are losing control. In fact, such a move can offer substantial benefits. Read on to discover several reasons why outsourcing is better than in-house HR.

Everywhere you turn today; software seems to be the best solution. Perhaps you are already using software for your accounting and marketing, but you haven’t yet considered getting human resources software in your business. Do you think it’s a luxury? Well, companies that have used HR software would call it a necessity.

Defining HR software

HR software is a platform that combines various processes and systems to ensure a company’s data is stored properly and employees are readily available when needed. All HR software is different, and each company requires unique applications because the needs vary. However, the systems will typically have attendance record keeping & time stamps, benefits administration, payroll management, or a combination of these functions.

In case you have been handling you HR operation manually, consider these benefits of outsourcing HR services by getting a software system.

Cost savings

Have you familiarized yourself with the expenses you incur due to employee turnover? Perhaps you have been underestimating what it costs your business to replace a worker. Research from different studies has shown that a company spends anywhere from 16% -123% of the average employee annual remuneration to hire someone new. Even replacing a person in a low-paying job can cost you about 16% of their salary.

So, how does this relate to HR software? When you get a good HR platform, it will be easy to reduce turnover because you’ll get all the help you require to make sure employees’ needs are catered for. Additionally, a system will make the process of getting the right candidate for the job much simpler thus reducing the probability of hiring an individual who doesn’t suit the position.

Utilization of time

Time is an essential resource for your company, and you can afford to mismanage it. Thus, it’s vital that you help your HR staff by getting a system that can help them maximize time. Does your HR team input data by hand, make phone calls, and vet candidates for openings manually? How will they be able to have adequate time to handle other things that matter like enforcing the company policy or handling legal problems? Well, with this software you can certainly save time and allocate human resources in a more efficient manner.


Many entrepreneurs believe that buying a state-of-the-art HR software package can bankrupt their budget, but this is not true. Some HR packages even have monthly memberships and financing programs that can be helpful even to small startup businesses. Companies with such software can confirm that the money lost in terms of mistakes and lost man-hours cannot compare to the cost of getting an HR system.

Accurate insights

The HR department nowadays receives high amounts of data and it is virtually impossible for one person or several individuals to process everything in time. This means that valuable data is constantly misplaced or overlooked. The beauty of having HR software is, you don’t need to depend on human limitations. All the received information is synthesized and analyzed in time through powerful ways that can allow your company to get more accurate insights and even make informed strategic decisions.


by: Sia Hasan